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Resins & Coatings

News Review


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Do low oil prices affect coatings' raw materials?

For coatings producers one of the big benefits of the sharp fall in oil prices in the second half of last year (2014) should be a drop in raw material costs.
Some commentators are also predicting a rise in demand due to the effect of lower oil prices cutting the production and distribution costs of a wide range of industrial and consumer products. However, neither is likely to happen on a significant scale in the short-term in Europe. While oil prices have been plummeting suppliers of some coating raw materials have in fact been announcing price increases. At the same time, rather than boosting demand, the oil price drop has had the opposite effect in Russia, which has been one of Europe fastest growing coatings markets.
If oil prices stay at the current low level or fall further, analysts are forecasting that in the longer term they could start bringing down raw materials costs in many sectors. "Since the 2008 financial crisis in Europe, producers of raw materials like basic chemicals have tended to keep low stocks", said Amit Sharda, Chemicals Analyst at Oxford Economics, Oxford, England. "This has resulted in a lack of sufficient flexibility in the system for downstream users to stock up their own raw materials in order to take advantage of upstream price decreases". The result has been that even at times of economic crisis or supply/demand imbalances, prices have gone up, sometimes steeply.
Raw material suppliers which are currently attempting to push up their own sales prices are blaming other factors outside the oil value chain. Clariant, the Swiss-based coatings materials supplier, for example, said that increases in operating costs was the main reason behind the announcement in late 2014 of a 10% rise in prices of additives for coatings and other products made by its Plastics and Coatings segment.
Figures from the European Chemical Industry Council (CEFIC), which includes downstream sectors like coatings, show that in the first three quarters of 2014, chemical producer prices dropped 1.7%, but petrochemical prices declined by over double that level, while those for polymers dipped by only 0.3%.
(Coatings World)

AkzoNobel releases 2014 results

Akzo Nobel N.V. has reported positive volume growth and an improvement in return on sales (ROS) for the full-year 2014.
Excluding incidentals, ROS was 7.5% (2013: 6.1%). Operating income excluding incidentals grew 20% to €1,072 million (2013: €897 million), reflecting higher benefits from ongoing operational efficiency programs and lower restructuring charges, offset by higher adverse incidental items.
Revenue for the full year declined 2%, with volume up 1% in all Business Areas, more than offset by negative currency effects and divestments. - See more at:
CEO Ton Büchner said: "2014 was challenging, evidenced by negative currency effects, a continued lack of growth in Europe and a slowdown in some of the Asian and Latin American economies. During the year, we continued to build a solid foundation and remain on track to deliver on our 2015 targets."
(Coatings World)

PPG reports record Q4

PPG Industries reported 2014:Q4 net sales from continuing operations of $3.71 billion, up $207 million, or 6%, versus the prior-year figure of $3.5 billion.
Net sales in local currencies grew 10% year-over-year, with acquisition-related sales contributing about 6% and volume growth adding 4%. Unfavorable currency translation impacted net sales by 4%, or about $130 million.
"We established new fourth quarter and full-year milestones in sales and adjusted earnings per share from continuing operations", said Charles E. Bunch, PPG chairman and chief executive officer. "Our strong financial performance, including several consecutive years of at least 20 percent adjusted earnings growth, clearly illustrates the benefits of our active portfolio management, earnings-accretive cash deployment and persistent operational focus. For the fourth quarter, our adjusted earnings per share increased by 26% supported by growth of at least 10% from each reporting segment".
"As we enter 2015, we anticipate growth rates will remain mixed by region, with North American and Asian economies continuing to grow at rates generally consistent with 2014. Our base case assumption is that European growth will remain mixed by country but subdued overall. However, we believe that European economies stand to benefit considerably if oil prices remain at current levels, which may stimulate higher growth in that region", said Mr. Bunch.
(Coatings World)

Nanocoatings market to outgrow 22% by 2020

The global nanocoatings market revenue is expected to reach USD 8.17 billion by 2020, according to a new study by Grand View Research, Inc. Global nanocoatings market volume was 309.5 kilo tons in 2013 and is expected to reach 1,262.9 kilo tons by 2020, growing at a CAGR of 22.3% from 2014 to 2020.
Nanocoatings are being extensively used as a substitute to conventional polymer coatings in applications including automobile, building and construction, and medical and healthcare. Nanocoatings demand is expected to increase due to superior properties and lesser VOC emissions as compared to other commercially used coatings in the market.
Anti-microbial nanocoatings were used widely in applications including medical & healthcare and building & construction to avoid infestation of disease spreading microbes. The segment demand was estimated at 90.9 kilo tons with revenue of USD 541.6 million in 2013 and is expected to grow at a CAGR of 22.9% from 2014 to 2020. Anti-fingerprint nanocoatings are expected to be the fastest growing product segment at an estimated CAGR of 23.2% from 2014 to 2020. The segment is expected to witness growth on account of its usage in electronics and automotive application.
(Coatings World)

Sherwin-Williams presents improved exterior acrylic latex paints

Sherwin-Williams Resilience and SuperPaint Exterior Acrylic Latex Paints are now available with improved resistance to early dirt pick up and color fade, delivering outstanding performance that homeowners can count on.
Resilience Exterior Acrylic Latex Paint gives painted exteriors exceptional moisture resistance so homeowners do not have to postpone painting when the forecast calls for rain, or quit working early in the day because of dew concerns. Resilience can be applied in temperatures as low as 2°C, and levels for a smooth, uniform finish. This paint also contains VinylSafe® Technology allowing for darker colors to be painted on vinyl siding without warping or buckling.
SuperPaint is available in flat, satin, gloss and high-gloss sheens.

Synthopol Chemie strengthens market position in Asia

As part of its internationalisation strategy, Synthopol Chemie Germany is continuing to expand its market position in growth markets.
After successfully launching collaborations with distributors in Mexico (Diquisa) and South Korea (BF Chemicals) in 2014, the company signed new distribution contracts in January 2015 for the Asian markets of China, Hong Kong and Vietnam, and for Australia and New Zealand.
(European Coatings)

Huntsman misses Q4 expectations

Huntsman reported a quarterly loss of $38 million.
Huntsman's gross margin narrowed to 15.2% from 16.5%, while operating expenses rose 12%. Revenue at the company's textiles division dropped around 3%, while the polyurethanes division's revenue fell around 2%. Performance products revenue dropped around 4%.

BASF and PETRONAS to build 2-EHAcid plant

BASF and PETRONAS Chemicals Group Berhad (PCG) will build a new world-scale production plant for 2-Ethylhexanoic Acid at the site of their existing joint venture, BASF PETRONAS Chemicals, in Kuantan, Malaysia. The construction of this plant, which will be the first of its kind in Asia, is expected to commence in Q2 of 2015.
The plant, with a total annual capacity of 30,000 metric tons of 2-EHAcid, is expected to start production in the fourth quarter of 2016. The new plant will benefit from backward integration into the site, allowing high delivery reliability and maximizing efficient use of energy and feedstock.
2-Ethylhexanoic acid is a chemical intermediate used as a compound for example in the production of synthetic lubricants as well oil additives. It is also used for functional fluids like automotive coolants, metal salts for paint dryers, plasticizers, stabilizers, catalysts and other applications in various industries. BASF operates a 2-EHAacid production plant at its Verbund site in Ludwigshafen, Germany.

PerkinElmer collaborates with Waters

PerkinElmer, Inc., a global leader focused on improving the health and safety of people and the environment, today announced a chromatography collaboration with Waters Corporation to deliver market leading software and premium instruments to PerkinElmer's customers.
PerkinElmer's liquid chromatography (LC) and gas chromatography (GC) portfolio will be standardized on Waters Empower® Software, an industry leading chromatography data software (CDS) system that manages multi-vendor data and simplifies data collection, processing and reporting. This standardization will help PerkinElmer's customers to simplify workflows by unifying their chromatography data onto one platform and delivering confidence in their analysis.
PerkinElmer, Inc. is a global leader focused on improving the health and safety of people and the environment. The Company reported revenue of approximately $2.2 billion in 2014, has about 7,700 employees serving customers in more than 150 countries.

Exhibition & Conference : UTECH 2015

Increasing sustainability, reducing emissions, lightweighting and enhancing flame retardance are among the innovative new developments in polyurethane technology for automotive applications due to be unveiled at the UTECH Europe conference and exhibition, taking place at the MECC in Maastricht, The Netherlands from 14 to 16 April 2015.
An entire session of the UTECH Europe conference is dedicated to automotive developments with no less than nine papers out of the conference's total of over 90. Conference delegates and exhibition visitors can also discover the latest products and solutions for manufacturing polyurethane-based automotive components in the UTECH Europe exhibition.
UTECH Europe 2015 is uniquely placed as a truly international exhibition and conference for the polyurethanes industry.
(Crain Communications)

(More upcoming events on :

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The Resins & Coatings News Review by ANDRIANOS Chemicals is a weekly newsletter offered freely to all subscribers, since 2006. News covered include new products, new technology, M&A, J/V, price changes (affecting European market), market analysis and historical facts of the European and global resins & coatings chemical industry. Subscribe to our free weekly newsletter.
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News are listed from various sources, as quoted above, aggregated by agents ANDRIANOS Chemicals, Athens, Greece.